HONG KONG, May 11 /PRNewswire/ -- CHINA NATURAL RESOURCES,
INC. (Nasdaq: CHNR), a company based in the People's Republic of China ("PRC"), today
announced that, on April 30, 2010 it
entered into an agreement (the "Agreement") with Feishang Group
Limited ("Shareholder"), a related party, pursuant to which China
Natural Resources acquired from the Shareholder (a) all of the
issued and outstanding capital stock (the "Shares") of Wealthy Year
Limited ("Wealthy Year") and its wholly-owned subsidiaries
(collectively, the "Coal Group") and (b) the HK$12,407,324 (US$1,590,683) outstanding indebtedness owing by
Wealthy Year to the Shareholder on the closing date
("Indebtedness").
Wealthy Year, through its subsidiaries, owns mining rights to
and/or operates five coal mines located in Guizhou Province, the PRC.
The purchase price for the Shares and Indebtedness is
US$87 million, subject to adjustment.
The purchase price was determined with reference to, inter alia,
the independent valuation of the equity value of the five mining
subsidiaries of the Coal Group amounting to approximately
RMB1,190 million (US$174.33 million) compiled by Norton Appraisals
Limited. Additional details of the transaction are contained in the
Company's Current Report on Form 6-K filed with the Securities and
Exchange Commission on May 11,
2010.
Mr. Feilie Li, the Company's CEO and Chairman commented: "The
acquisition is consistent with our strategy to expand our coal and
metal reserves through acquisitions. We are positive about the
prospect of the coal mining industry in the PRC. In view of the
continuing economic growth in the PRC, we believe that demand for
coal will continue to be robust in the foreseeable future and the
tension for global energy demand will continue".
For the convenience of the reader, amounts in Renminbi ("RMB")
have been translated into United
States dollars ("US$") at the rate of US$1.00=RMB6.8263
quoted by the People's Bank of China as at April 30,
2010. Translations from Hong Kong Dollars to U.S. Dollars
have been made at the official pegged exchange rate of US$1.00 = HK$7.80
as of April 30, 2010. The RMB is not
freely convertible into US$ and no representation is made that the
RMB amounts could have been, or could be, converted into US$ at
that rate, or that the translation into US$ is in accordance with
US generally accepted accounting principles.
About China Natural Resources
China Natural Resources, Inc., a British Virgin Islands corporation, through
its operating subsidiaries in the
People's Republic of China, is currently engaged in (a) the
acquisition, exploration, development and production of coal
resources in the PRC; and (b) the acquisition and exploitation of
mining rights, including the exploration, mineral extraction,
processing and sale of iron, zinc and other nonferrous metals
extracted or produced at mines primarily located in
Anhui Province in the PRC.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of federal securities laws. These forward-looking
statements are based upon assumptions believed to be reliable, but
involve risks and uncertainties that may cause actual results of
operations to differ materially from the forward-looking
statements. Among the risks and uncertainties that could
cause our actual results to differ from our forward-looking
statements are our intent, belief and current expectations as to
business operations and operating results of the Company,
uncertainties regarding the governmental, economic and political
circumstances in the People's Republic of
China, risks and hazards associated with the Company's
mining activities, uncertainties associated with ore reserve
estimates, uncertainties associated with metal price volatility,
uncertainties associated with the Company's reliance on third-party
contractors and other risks detailed from time to time in the
Company's Securities and Exchange Commission.
SOURCE China Natural Resources, Inc.